Under what conditions will the Guarantee of Performance for the Cinnabon franchise terminate?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, GoTo Foods Systems LLC, a Delaware limited liability company (the "Guarantor"), located at 5620 Glenridge Drive NE, Atlanta, Georgia 30342, absolutely and unconditionally guarantees to assume the duties and obligations of Cinnabon Franchisor SPV LLC, located at 5620 Glenridge Drive NE, Atlanta, Georgia 30342 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This Guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the Guarantee of Performance provided by GoTo Foods Systems LLC will continue until all obligations of Cinnabon Franchisor SPV LLC under its franchise registrations and the Franchise Agreement are satisfied. Alternatively, the guarantee terminates when the liability of the Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever event occurs first.
This means that GoTo Foods Systems LLC is committed to ensuring that Cinnabon fulfills its duties to franchisees. This guarantee remains in effect as long as Cinnabon has ongoing responsibilities or potential liabilities to its franchisees.
However, the guarantee does not end if a franchisee has an outstanding claim against Cinnabon. This protects franchisees by ensuring that the guarantee remains in place even if there is an unresolved dispute. The guarantor, GoTo Foods Systems LLC, also does not waive receipt of notice of default on the part of Cinnabon. This ensures that GoTo Foods Systems LLC is informed if Cinnabon fails to meet its obligations. The guarantee is binding on GoTo Foods Systems LLC and its successors and assigns, providing long-term security for Cinnabon franchisees.